How to qualify potential serious buyers? (buyers agent, Realtor, agreement, listings)

[keeperk]

I've been selling remote land for almost 10 years now and it still amazes me how people have no quams about wasting my time and gas for their day in the park. It's not just a little time or a little gas. Some showings can be quite the event and at least $100. + in gas for one showing.

I'm the outting, the stretch their legs on a long trip, side trip, get out of the mother's day picnic (finally now I refuse to show land on mother's day) take the dogs to the country to run, get some great camera shots ( even used to ban cameras on showings at one time) enjoy the day in the country and see the back country, or lets take the kids to the country day. Sometimes I'll have to bring the trailer and atv, and I might even have my own mishaps trying to get back home. Trailer lights go out in the dark, flat tires...

I've learned thru the years, Money is no object really means, it doesn't matter what it cost because I'm not buying anything anyway.

I try to explain to people before they book an appt. in such a nice way that I understand they are coming a long ways to look(I know I'm probably the side trip), but I really need to know they have the means to purchase and at least have a serious intent to find something, even if what I have would not work for them in the end. That at least they were seriously in the market.

I'll explain what goes into a showing of what I have for sale and how expensive and time consuming it can get for me, so please don't come unless they have a serious intent and means to purchase, and if they're up for that let's go!
Sometimes they'll get all defensive and start crap like I'm trying to sell them over the phone, or whatever else BS.

I know with homes, many brokers actually want to see their bank accounts, a lender approval letter or something to prove they have the means. It's always been a mystery to me how that is done and plus the shoppers even expect that!

If I ask a simple question of do you have X dollars as that's what it will take to purchase what you want to see, they think I'm being nosey and get defensive. A lot of what I have for sale a lender would not loan on. I'll explain you need X dollars, the owner would do this, is that within your means? Or I'll ask to make it simple, how much $$ do you have to put down, what kind of monthly pmts can you do and from there I can work up a list of properties for you to see.

I have tact and diplomacy. My serious shoppers brag and brag over how professional I am and what a great broker I am. So I know I'm not lacking in that.

Years ago after hundreds of attempts to qualify someone to no avail, I just got to where I would just book em, show em, and learned my numbers. I knew for every 10 showings I would make a sale, so I would just book like crazy and sold 1 a week.

Then as I got better I suppose, I would make a sale for every 1 in 2 that I showed land to. So I just didn't bother to qualify. They wanted to come? I said OK lets go!

It's not the same now. Less people buy, the price of gas is up and I can't afford to take evey Tom, Dick and Harry to see land. Plus I'm driving further away, and they want to see more land with EVERYONE before they purchase, like everything under the sun, and less people purchase than did before due to economics.

I had to take on working at the schools at the first of the school year, then only show on days off. I made min. wage, and one appt. would cost me 2 days pay. So really, it was impt. not to take the lookie lou's.

My serious buyers understood while I was explaining closings while I was in a kindergarten class and were so happy their purchase was one step closer to getting me out of that job and back to doing what I loved. So I know there are caring compassionate buyers out there.

So now I need to qualify better.

I would like some professional qualifying tips!

I just got burnt on a 3 timer wasted my F#$% time appt. I'm $300. down in gas, 4 days and lots of postage over these people. MY last response from them was, OH! 130 more emails to go! Gotta run!

[Mark Brian]

I have heard that some buyers agents are using an upfront retainer. When the client closes, the retainer is deducted from buyers agent commission, if the client does not buy there is no refund.

Politely explain the reason you do this is because of the problems you just described and if the person buys, they will get 100% of the retainer back at closing.

[Rakin]

I was about to recommend the same as Mark above. Maybe a $200 retainer ? If they are not serious let them go waste your competitors time and gas.

Working with quite a few Relo clients we give the old city hall tour. Most 70% do move so it works out but it's the risk you take of the other 30% that don't. I can see where country sales are different.

[chet everett]

While you can't always judge a book by its cover, you sometimes can get a sense for how the story is written if you skim a few pages...

I used to hate getting a call out the blue from folks wanting see a high dollar listings way at the edge of our area. Meeting at my office wouldn't tell me much, but having a cup of coffee would allow me to skim over their circumstances a bit more casually. The little stuff like going to a place with waitresses and I pick up the tab -- if the potential client does offer to get the tip will literally let me see what is in his wallet. If they don't even think about putting down a tip that tells me something too. Folks with no folding money are pretty rare but just one sign that maybe this was not the most serious of buyers. Better to find out just how serious they might be while in town than way out in no man's land.

I too think a polite but pretty clear retainer agreement could be a deterrent for going on wild goose chases. It is not just folks that flat out don't have the dough to buy some land far away, but also those that have no real motivation to buy. I mean it is one thing to want to see dirt from on top of it, but with the nice views that google and bing provide of darned near every spot on earth folks ought to have a pretty clear idea of where the land is. If, over your little coffee shop chat, it becomes clear that they are pretty unaware of all the pieces of the puzzle that need to come to together to buy raw land (from lack of suitable lenders, to time-lines for building to what a pain it likely will be to uproot one's self from where ever they current are at to the 'dream' they envision) then you can just let 'em pace around some vacant plot a lot closer in than way out in the sticks. Further if they are buying big old spread and their intention is "build a place for myself and then maybe sell off the rest in parcels" that is technically DEVELOPMENT and the odds of that pipe dream coming to fruition are pretty slim. Odds that is the SELLER'S story...

For what is worth I do understand that there are those like Sam Walton that are worth billions and drove a Ford pickup, but the odds of such client falling into my lap are not so great that is worth bending over backwards for every looky lou. Spending 30 minutes in town at a coffee shop is probably preferable to spending that same amount of time burning gas. If during those 30 minutes it helps you get from 1 in 10 to closer to that 50% ration you had that ought to go a long way to making things more efficient.

[DMenscha]

LOL I'm off today on an appointment that I am certain will be a total waste of time, but I'm saving my agent from having to do the tour, so I feel it isn't a total waste.

For me, showing land and hiking around is what I like doing more than anything (especially paperwork) and I figure that the clients that I show property to, will have a favorable impression of the area and hopefully me, so that if they don't purchase something, maybe they know someone that will.

I thought I had a far flung service area covering 250 square miles, how big is yours? $300 bucks for fuel? Man, at $3/gal that's 100 gallons of fuel and at even 15 mpg is 1500 miles driven.

I'd either cut down the area I show in or find another vehicle. Maybe if you tell them that you'll be taking their car instead, at least you can see some terrain on their nickel.

[middle-aged mom]

I do not show anything unless we do a counseling session in my office or their home. If it's an out of area buyer ( inbound relo) this is accomplished over the phone. I want to see pictures of their current home, their stuff and hear what they what they love and dislike about it. This can take 1-2 hours and they know this upfront.

This is an opportunity for me to understand what they want, why they want it, and what makes them tick..... It also gives the buyer an opportunity to learn what I can and cannot do for them.

Getting prequalified for a mortgage is a top priority.

Tire kickers decline the offer and find someone else to entertain them.

[frogandtoad]

I would never pay a retainer. I would never disclose my financial situation to a realtor for their own benefit (a pre-qual. letter for an offer, yes. for the realtor? no.)

I've bought homes in less than a day, which makes for a really sweet payday for a realtor who put in all of 6 hours. Work that out by the hour and they did incredibly well. I've also taken 6 months to look for a home and then decided not to buy. Obviously, did not work out well for the realtor. But, if I were to buy in the future, I'd use her and I'd also recommend her to others, so she may end up making some money because of me one way or another.

That's the nature of the business of sales. You get paid when you make a sale. No sale? No payday. Sometimes, even if someone is fully qualified, they won't buy. Other times, they'll buy right away. Hopefully it all evens out in the end for you. Maybe you'll end up with someone unqualified once in a while. That's just how it goes.

But someone in sales who is looking to guarantee themselves money? Or who feels somehow entitled to my financial situation before I have decided whether I am going to use them as a realtor? No way. That's like a shopkeeper stopping people at the door saying "I'm only going to bring these clothes to you in the back if you show me you are qualified to buy something. Or give me $20 and I'll credit your clothing purchase if you buy." Not a very good business model.

[frogandtoad]

Originally Posted by DMenscha

LOL I'm off today on an appointment that I am certain will be a total waste of time, but I'm saving my agent from having to do the tour, so I feel it isn't a total waste.

For me, showing land and hiking around is what I like doing more than anything (especially paperwork) and I figure that the clients that I show property to, will have a favorable impression of the area and hopefully me, so that if they don't purchase something, maybe they know someone that will.

I thought I had a far flung service area covering 250 square miles, how big is yours? $300 bucks for fuel? Man, at $3/gal that's 100 gallons of fuel and at even 15 mpg is 1500 miles driven.

I'd either cut down the area I show in or find another vehicle. Maybe if you tell them that you'll be taking their car instead, at least you can see some terrain on their nickel.

EXACTLY. Now you're an agent I'd use--that's the right attitude for the business you're in!

[Brandon Hoffman]

What MAM said goes for me as well.

[byoak]

Knowing that a buyer is pre-qualified is a major part in helping them purchase a property. How is it helpful to the buyer to show them properties that they are not qualified for. This wastes the sellers time for scheduled showings, the buyers time, and my time. I do not care if you are qualified for $300k and want to look at homes priced in the $150k range. I do care if you are qualified for $300k and you want to look at properties in the $500k range. Where is it beneficial to the buyer to not make sure all their ducks are in a row and being honest and upfront with a Realtor that they chose to work with before taking on the task of purchasing a home?

Originally Posted by frogandtoad

I would never pay a retainer. I would never disclose my financial situation to a realtor for their own benefit (a pre-qual. letter for an offer, yes. for the realtor? no.)

I've bought homes in less than a day, which makes for a really sweet payday for a realtor who put in all of 6 hours. Work that out by the hour and they did incredibly well. I've also taken 6 months to look for a home and then decided not to buy. Obviously, did not work out well for the realtor. But, if I were to buy in the future, I'd use her and I'd also recommend her to others, so she may end up making some money because of me one way or another.

That's the nature of the business of sales. You get paid when you make a sale. No sale? No payday. Sometimes, even if someone is fully qualified, they won't buy. Other times, they'll buy right away. Hopefully it all evens out in the end for you. Maybe you'll end up with someone unqualified once in a while. That's just how it goes.

But someone in sales who is looking to guarantee themselves money? Or who feels somehow entitled to my financial situation before I have decided whether I am going to use them as a realtor? No way. That's like a shopkeeper stopping people at the door saying "I'm only going to bring these clothes to you in the back if you show me you are qualified to buy something. Or give me $20 and I'll credit your clothing purchase if you buy." Not a very good business model.